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What are bankruptcy priorities? DAM-WEG-CTFI
- DAM=Domestic support obligations, Administrative Costs, Middleman Debts
- WEG=Wages, Employee Benefits, Grain producers & Fisherman
- CTFI=Consumer Deposits, Taxes Unpaid, Federal Depository, Injury claims
- Other-Secured, Unsecured-timely filed, Unsecured-not filed
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AMT Issues-Corporation
AMT Issues-Individual
- Corporation
- Tax Rate 20%
- Exemption $40,000
- Phaseout $150,000
- Preferences Contibutions
- Adjustments No Adjustments
- Adjustments ACE
- Individual
- Tax Rate 26-28%
- Exemption $70,950 (married)
- Phaseout $150,000
- Preferences Not a Preference
- Adjustments Itemized Deductions
- Adjustments No ACE
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Deductions allowed in the Estate
- a. Administrative expenses
- b. Funeral expenses
- c. Debits of the estate, including medicine
- d. Other claims against the estate
- e. Charitable contributions-named in will
- f. Unlimited marital deduction
- g. State estate tax deduction
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Non-Liquidating Distributions
- Treated in order
- a. Dividend Income (to the extent of E&P)
- b. Return of basis
- c. Capital gains
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Liquidating Distributions
- a. Shareholders and Corporations recognize a gain or loss-Use the fair market value
- Expenses of liquidation are used to reduce gain
- Exception-Shareholder another corp owning 80%+ then no gain or loss. Basis same as liquidating corp.
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Reorganizations
- Type A=Merger or Consolidation
- Type B=P acquires 80% of voting stock (t). Stock for stock
- Type C=Stock for Asset. Substially all of (t) acquired by (p)
- Type D=Spin off or split off
- Type E=a recapitalization or change to structure
- Type F=mere change in identity form or place of org.
- Type G=Assets transferred to another in a bankruptcy
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Sec 10a and 10b 1934 and Sec 11 1933
What a plaintiff must show under each?
- Anti Fraud 1934 10a and 10b
- 1. Material false statement
- 2. Acted with scienter or a reckless disregarded of truth
- 3. Suffered a loss
- 4. Reliance
- Sec 11 of 1933
- 1. Acquired the stock
- 2. suffered a loss
- 3. Material misrepresentation
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Adjustment for AGI: General
- IRA
- Moving Expenses
- Forfeiture penalties
- Alimony
- Jury Duty
- Student Loan Interes
- Health Savings Acct
- Tuition & Fees
- Educators Expense
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ADJ for AGI: Self Employed
- Trade or Business Expense
- Hobby Losses
- Casualty Losses
- Depreciation & Amoritization
- Sect 179 election
- Self-Emp Tax
- Self-Emp Health Ins
- Retirement Accounts
- Health Savings Acct
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ADJ for AGI: Passive
- Passive losses
- Rental losses
- At risk rules
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Adj from AGI: Think Schedule A
- Medical (7.5%)
- Taxes
- Interest Deduction
- Charitable Contributions
- Casualty losses
- Lessor of FMV or ADJ, Less $100, 10% of AGI
- Misc-2% of AGI
- Tax prep fees, job hunting, professional dues, uniforms, business tools, investment expenses, IRA Custodial fees, hobby losses, unreimbursed employment expenses, Education costs to maintain or improve skills.
- Misc-No limit
- Gambling losses, impairment related work expenses, federal estate tax on income-decedent
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